Core Insights - Institutional investors favor wide-moat businesses that can consistently generate exceptional margins and cash flows with minimal competitive risk [1] - Companies that demonstrate reliable above-average growth are also highly attractive to institutional investors, leading to significant increases in valuation multiples when both factors are present [1] Summary by Category Business Characteristics - Wide-moat businesses are characterized by their ability to maintain high margins and cash flows while facing little competitive threat [1] - The combination of strong cash flow generation and growth potential enhances the attractiveness of these companies to investors [1] Investment Implications - The valuation multiples of companies that exhibit both strong margins and growth can experience substantial increases, making them appealing investment opportunities [1]